6 Dec 2008

House to vote on auto rescue - Speaker

9:50 pm on 6 December 2008

House of Representatives Speaker Nancy Pelosi expects a vote on a bailout bill for the Big Three US car makers to take place next week.

In a statement on Friday, she said she expects that legislation will be brought up for a vote in the House next week.

She said devastating job loss figures issued on Friday had made it clear Congress must offer "limited" short-term help to the auto sector.

A total of 533,000 jobs were lost in the United States in November - the biggest monthly cut since 1974.

General Motors Corp, Ford Motor Co and Chrysler LLC are seeking $US34 billion to stay in business.

GM wants $US12 billion in loans, $US4 billion of it immediately.

Chrysler wants a loan of $US7 billion. Ford is asking for a $US9 billion credit line.

However, lawmakers are reluctant to approve another rescue plan in wake of a $US700 billion package they earlier passed for Wall Street.

Many also argue that market forces ought to determine the fate of the auto industry, not government intervention.